Vimpelcom Ltd. and Hutchison Whampoa consolidate Italian assets

    Vimpelcom Ltd. Group signed an agreement with Hutchison Whampoa regarding the merger of Italian assets Wind Telecomunicazioni and Three Italia. The current deal is part of the new plan of Vimpelcom Ltd. saving $ 750 million over the next three years, as previously reported by Megamozg reporters. To implement the agreement, partners need to conduct a large number of corporate procedures, as well as obtain the approval of regulators, Vedomosti writes . After the transaction is closed, the combined company Holdco will become the owner of two operators, with a 50% stake in partners.

    Wind debts will remain in the holding. The Supervisory Board of the formed company will include six members - three from each of the partners. The head of the board of directors will change every 18 months. According to the CEO of Vimpelcom ltd., The deal should bring 700 million euros per year.

    In analyzing the transaction, Wind was valued at $ 13.9 billion, and Three Italia at 7.9 billion euros. The total transaction amount is 21.8 billion euros. According to Vimpelcom representatives, this is the largest deal in Italy since 2007. The

    subscriber base of the new enterprise will include about 31 million mobile users, plus 2.8 million fixed-line users. The merger will save on both capital and operating costs.

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